# Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging ofreceivables analysis.Days Past Due1 to 30\$90,000Total31 to 6061 to 90Over 90Accounts receivablePercent uncollectible\$36,000\$570,000\$396,000\$18,0007%\$30,00010%1%2%5%a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable toestimate uncollectibles, instead of the aging of receivables method.b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in theAllowance for Doubtful Accounts is a \$12,000 credit.c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in theAllowance for Doubtful Accounts is a \$1,000 debit.Complete this question by entering your answers in the tabs below.Req AReq B and CEstimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable toestimate uncollectibles, instead of the aging of receivables method.Estimated balance of allowance for uncollectibles

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Step 1

(a) Compute the balance of the Allowance for Doubtful Accounts under Percentage method:

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